BEMIDJI – The Bemidji Area ÍáÍáÂţ»s Board of Education’s final regular meeting of 2023 had a particular focus on finance as well as continued discussion on teacher contracts.
The board approved the district’s annual audit on Monday and during the Truth in Taxation portion of the night, District Business Director Ashley Eastridge spoke to the 2024 levy limit.
ADVERTISEMENT
ÍáÍáÂţ» boards are required to certify their levy limit in December after setting an initial levy limitation at a September meeting.
With taxes payable in 2024 and considered as revenue to the school district for the 2024-2025 fiscal year, the levy limit was certified at $11,089,076, an increase of $283,942 or 2.63% from last year’s levy of $10,805,134.
The district’s tax base increased by 18.9% this past year compared to a 6.2% increase the previous year and 36.2% over a four-year time frame.
“This growth can be a result of new construction or existing properties selling for more,” Eastridge said, “or a combination of both.”
Eastridge noted that most funding formulas are based on estimated student enrollment counts, and once enrollment becomes actual data, an adjustment is made to the district’s levy. State aid also plays a part in the levy amount.
Eastridge presented the 2024 preliminary budget, which depicts revenue in the district’s general fund at roughly $79.3 million and $77 million in expenses.
“The general fund is used to support and account for our main operations, which is classroom instruction and all the accompanying services of providing that instruction including transportation, pupil support services and administration,” she detailed.
ADVERTISEMENT
Of the $79.3 million in revenue, 76% is projected to come from the state, 13% from federal and 11% from local sources.
“Property taxes are a portion of that local revenue and that makes up about 74% of the local (revenue source), or approximately 8% of our total revenue,” Eastridge said.
About $35 million of state funding derives from the basic education formula, which is considered the most reliable funding source for districts across the state.
“Although this is the most reliable funding source, it has historically not kept up with inflation,” Eastridge said. “Over the last 20 years, had funding kept pace with inflation we would be receiving $8,381 per pupil instead of the $7,138 we are currently receiving. For Bemidji Area ÍáÍáÂţ»s, that would equate to over $6 million in the current year.”
The complete 2024 preliminary budget and 2022-2023 audit will become available on
Public participation
The public participation portion of the meeting proved eventful yet again as several speakers touched on increased support for teachers, namely salary increases and other contractual obligations.
Superintendent Jeremy Olson took an opportunity to respond after the public comment period, speaking on a $2.2 billion funding boost for K-12 education that the Minnesota Legislature passed in May.
ADVERTISEMENT
Initial numbers indicated the district would receive a 10.9% funding increase for the 2024 fiscal year and 4.6% for 2024-2025. However, these numbers were based on a Minnesota Department of Education report not meant for budget planning and provides only an estimate based on information that MDE has at the time.
“This report was based on inaccurate enrollment numbers that showed our district with a larger enrollment than we currently have,” Olson said, noting that the estimate overinflated the district’s enrollment by about 200 students.
Additionally, the percentages didn’t take into account the district’s compensatory aid returning to pre-pandemic levels as well as cross-subsidies related to transportation and special education that are not recognized as new money available to the district for salary and benefit enhancements.
When adjusted, the funding increase is closer to 3.1% for 2023-2024 and 2.8% for 2024-2025.
Other business
The board unanimously approved a tentative agreement with the United Food Service Workers Association, which has a total two-year cost of about $185,000.
The agreement includes a $1 per hour increase in the district’s salary schedule for 2023-2024 and a 2.5% increase for 2024-2025.
The district’s health insurance contribution will remain at $845 a month for 2023-2024 and increase to $885 per month effective July 2024.
ADVERTISEMENT
The board also approved a resolution to seek recommendations for potential reductions in programs and positions.
“Lack of participation in certain offerings in the district’s elementary and secondary schools caused by shifts in students’ interests, as well as financial limitations, may necessitate the discontinuance of certain programs and staff positions,” District Human Resources Director Jordan Hickman said. “This may also necessitate the termination of some contracts and the placement of other teachers on an unrequested leave of absence.”
These recommendations will be presented for formal consideration at either the March or April board meeting.
The full meeting can be viewed on the
The next regular board meeting is scheduled for 6:30 p.m. on Monday, Jan. 22, in the district board room.
The Trust Project
